Hsbc Holdings PLC Makes New Investment in Ares Capital Corporation $ARCC

Hsbc Holdings PLC purchased a new stake in Ares Capital Corporation (NASDAQ:ARCC) in the fourth quarter, HoldingsChannel reports. The institutional investor purchased 64,500 shares of the investment management company’s stock, valued at approximately $1,305,000.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Investment Partners Asset Management Inc. bought a new stake in shares of Ares Capital during the 4th quarter worth about $1,314,000. Sound Income Strategies LLC lifted its holdings in Ares Capital by 5.6% during the 4th quarter. Sound Income Strategies LLC now owns 2,616,789 shares of the investment management company’s stock worth $54,691,000 after purchasing an additional 138,857 shares during the last quarter. Tectonic Advisors LLC lifted its holdings in Ares Capital by 10.8% during the 4th quarter. Tectonic Advisors LLC now owns 662,533 shares of the investment management company’s stock worth $13,403,000 after purchasing an additional 64,491 shares during the last quarter. Stableford Capital II LLC boosted its stake in Ares Capital by 75.7% in the 4th quarter. Stableford Capital II LLC now owns 145,641 shares of the investment management company’s stock valued at $2,946,000 after purchasing an additional 62,768 shares during the period. Finally, Prairiewood Capital LLC boosted its stake in Ares Capital by 22.9% in the 4th quarter. Prairiewood Capital LLC now owns 303,282 shares of the investment management company’s stock valued at $6,135,000 after purchasing an additional 56,465 shares during the period. Institutional investors own 27.38% of the company’s stock.

Ares Capital Stock Performance

Shares of ARCC stock opened at $18.78 on Monday. The stock has a market capitalization of $13.48 billion, a PE ratio of 11.52 and a beta of 0.56. The business’s 50 day simple moving average is $18.67 and its 200 day simple moving average is $19.05. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick ratio of 1.40. Ares Capital Corporation has a one year low of $17.40 and a one year high of $23.42.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.01). The firm had revenue of $763.00 million for the quarter, compared to the consensus estimate of $778.00 million. Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The firm’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.50 EPS. As a group, research analysts forecast that Ares Capital Corporation will post 1.9 earnings per share for the current year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 10.2%. The ex-dividend date of this dividend was Monday, June 15th. Ares Capital’s dividend payout ratio (DPR) is currently 117.79%.

Analyst Upgrades and Downgrades

ARCC has been the subject of a number of research reports. Citizens Jmp dropped their target price on Ares Capital from $23.00 to $22.00 and set a “market outperform” rating for the company in a report on Wednesday, April 22nd. B. Riley Financial lowered their price target on shares of Ares Capital from $22.00 to $20.00 and set a “buy” rating on the stock in a research report on Wednesday, April 29th. Royal Bank Of Canada dropped their price objective on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Wednesday, April 29th. Truist Financial dropped their price objective on shares of Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a research note on Wednesday, April 29th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Ares Capital in a report on Tuesday, June 9th. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $20.60.

Ares Capital Profile

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.